Societatea Energetica Electrica (EL) Q3 2024 earnings summary

Executive summary

• Consolidated revenues for 9M 2024 were RON 6.4 bn, down from RON 6.8 bn in 2023, with EBITDA at RON 1,062 mn and net profit at RON 302.4 mn, reflecting a challenging economic and regulatory environment.

• Distribution segment performance improved, offset by a significant decline in supply segment profitability.

• Major investments in renewables and grid modernization continued, with new photovoltaic parks commissioned and under construction.

• The Group maintained strong liquidity, with RON 1,578 mn available as of 30 September 2024.

• Strategic focus remains on grid investment, digital transformation, and maximizing non-reimbursable investment funds.

Financial highlights

• EBITDA reached RON 1,062 mn, operational profit RON 623.7 mn, and net result RON 302.4 mn for 9M 2024, with revenues down year-over-year due to lower energy prices.

• Net result margin decreased to 4.7% from 7.9% in 2023; EBITDA margin at 16.5% vs 17.5% in 2023.

• Net debt was RON 3,726 mn as of 30 September 2024, with a stable cash position at RON 641 mn and RON 938 mn in available credit lines.

• Distribution segment EBITDA rose by RON 372 mn, while supply segment EBITDA fell by RON 478 mn.

• CAPEX commissioning reached RON 330.6 mn, achieving 95.5% of the ANRE-approved plan.

Outlook and guidance

• The Group continues to focus on renewable energy expansion, grid modernization, and digitalization, targeting 1,000 MWh renewable production and 900 MWh storage by 2030.

• Positioned to stay within budgeted figures for the year, with strong liquidity and available credit lines to support ongoing obligations and investments.

• Expectation of electricity price increases post-liberalization in 2025, with ongoing discussions on vulnerable customer definitions and support mechanisms.

• Regulatory changes in distribution tariffs and supply price caps are expected to impact future margins and investment returns.

• Ongoing investments in smart grids, energy efficiency, and ESG initiatives are central to the 2024–2030 strategy.